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Ratan Tata on Fiat JV

Discussion in 'Fiat India News' started by ramjn, Aug 13, 2011.

  1. ramjn

    ramjn Staff Member Janitor

    Linea 1.3
    Tata warns of bumpy ride for car makers
    BS Reporter / Mumbai August 13, 2011, 0:59 IST

    Tata Motors chairman says crisis in western Europe may dampen demand for passenger cars.

    Tata Motors Chairman Ratan Tata has warned of a challenging year ahead for car makers in India even as the automotive industry continues to grapple with diminishing demand.

    “Looking ahead, I think the coming year will probably pose a considerable challenge. We all know western Europe is going through a relative crisis in terms of currency. All this is expected to dampen the demand for passenger cars,” Tata said while addressing shareholders at the company’s 66th annual general meeting here on Friday.

    Sales of passenger cars of the company in the domestic market declined 10.7 per cent to 69,529 units during the first quarter of this financial year, as against 77,858 units a year ago. While commercial vehicles posted 13 per cent growth in sales in the first quarter, Tata cautioned any decrease in the government’s spending on infrastructure would impact their sales.

    Tata also said the company should use the economic downturn as an opportunity to leverage low-cost manufacturing capabilities through design and manufacturing.

    With increased presence of several international automotive companies in India, Tata said efforts were being made to protect its share in the domestic market.

    “We need to also fill up the various product gaps that we may have. We are working on joint products with Jaguar and Land Rover and with Tata Daewoo”.

    Tata Motors is looking to tap the extensive dealer base of JLR globally while exploring synergies with it. JLR currently serves 160 markets globally. Tata also assured the shareholders over the company’s loss-making joint venture (JV) with Italy’s Fiat, saying efforts were underway to turn around the operations.

    “The JV was created with a certain set of assumptions. The assumption was basically that the JV would be to introduce Fiat products that we would market and we would produce products for ourselves,” Tata said.

    “Those assumptions in terms of volumes did not work out, more so for Fiat than for us because there was a downturn and they made an assumption on planned demand which did not materialise. Both Fiat and we are relooking at the contractual undertaking. I hope we resolve this,” he added.

    He said Tata Motors was looking to set up an vehicle assembly facility, especially for the Nano in Indonesia.

    The company is looking to tap the potential demand base for the ultra compact car in the Southeast Asian market. In addition, it will set up an assembly base in Brazil to cater to the Latin American market.
  2. Grandeur

    Grandeur Staff Member Janitor

    Thanks for sharing it here!
  3. jayadev

    jayadev Esperto

    Kannur, India
    Grande Punto 1.3 90 HP
    Ratan Tata is coming to Kerala , Kannur (my home palce) to visit "KVR dream vehicles ",for best tata-fiat showroom and service experience in south india.
  4. gurjinder

    gurjinder Staff Member Janitor

    LOL. Mr Tata is brutally frank here. :)
  5. varunrtr

    varunrtr Esperto

    KL-01/ TO
    Grande Punto 1.3
    brutal !! :O .. taking all the technologies from fiat and running his tata empire on with that and now complaining about fiat numbers !!! who has to be blamed ?! :O.... without the fiat engines, who would have bought manzas and vistas other than taxi operators !!!
  6. nbvcrao

    nbvcrao Amatore

    Scroll on NDTV Profit says...

    Scroll on NDTV Profit today under Corporate News says " Tata Motors thinking about considering its renewal with Fiat: Ratan Tata".

    Seems like Fiat will come out with its own set up..
  7. teky

    teky Esperto

    Lol - Tata motors considering? This should go into jokes thread I think. Seriously Fiat can do without the ASS, But Tata will you just sell dabbas?

    Sent from my LT15i using Tapatalk
  8. PaddleShifter

    PaddleShifter Staff Member Janitor

    Grande Punto 1.3
    The major issue also seems to be with FIAT itself in my humble opinion. Though I have no knowledge if this is because of some pressure as a result of JV terms and conditions but the move to stop Palio Stile production is a bad one.

    A FIAT Stile 1.3 MultiJet, base variant with just AC, front power windows and power steering at 4.5 lacs (read, no other comfort feature required) can do wonders to the volumes provided FIAT markets the product well.

    - Just drop the Palio badge from Stile.
    - A base variant with 1.3MultiJet at 4.5 lacs with 3 main features: AC, electric power steering and front power windows.
    - Good marketing.

    You don't need to look at TATA. And there is no need for pan India presence initially. I don't see any FIAT car in Haryana (just 1 or 2 every week). But here in Chandigarh, Punto/Linea is as common as i20. Concentrate on big cities with service back within reasonable distance from big cities. Then slowly expand.

    Maybe, set the dealer network of Nissan and Volkswagen as a benchmark initially. Cover all cities covered by these two manufacturers.
  9. jumu

    jumu Superiore

    Good thoughts paddleshifter. FIAT can easily do the consistent 3000 nos just by concentrating on the major cities that the newbies VW and Nissan are going on with. If they can do it for even a year , the bigger nos will automatically follow.
    Ratan tata is giving an impression that FIAT has become an avoidable baggage in his operations. Any wrong move by him to antagonize FIAT and he will regret for his lifetime. Its time he pulled his socks up than the other way round.

  10. bhai

    bhai Esperto

    Grande Punto 1.3 90 HP
    I think I should invite him to show the extreme 3rd class dealer in my city.

    After visiting he will say dealer is not 3rd class. Dealer has no class. :eek:

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